Astrocytes represent the most abundant cell type of the adult nervous system. Under normal conditions, astrocytes participate in neuronal feeding and detoxification. However, following brain injury, local increases in inflammatory cytokines trigger a reactive phenotype in astrocytes during which these cells produce their own inflammatory cytokines and neurotoxic free radicals. Indeed, progression of this inflammatory reaction is responsible for most neurological damage associated with brain trauma. Insulin-like growth factor-I (IGF-I) protects neurons against a variety of brain pathologies associated with glial overproduction of proinflammatory cytokines. Here, we demonstrate that in astrocyte cultures IGF-I regulates NFB, a transcription factor known to play a key role in the inflammatory reaction. IGF-I induces a site-specific dephosphorylation of IB␣ (phospho-Ser 32 ) in astrocytes. Moreover, IGF-I-mediated dephosphorylation of IB␣ protects this molecule from tumor necrosis factor ␣ (TNF␣)-stimulated degradation; therefore, IGF-I also inhibits the nuclear translocation of NFB (p65) induced by TNF␣ exposure. Finally, we show that dephosphorylation of IB␣ by IGF-I pathways requires activation of calcineurin. Activation of this phosphatase is independent of phosphatidylinositol 3-kinase and mitogen-activated protein kinase. Thus, these data suggest that the therapeutic benefits associated with IGF-I treatment of brain injury are derived from both its positive effects on neuronal survival and inhibition of the glial inflammatory reaction.Based on morphology and physiology, the adult nervous system is composed of two main groups of cells, neurons and glia. Neurons transmit high speed information through depolarization potentials, whereas glial cells provide a basic support to neurons. Under normal conditions, glial cells, and in particular astrocytes, modulate neuronal feeding and detoxification and produce neuronal survival factors. However, following brain injury, astrocytes actively participate in the inflammatory response and in scar formation. Inflammatory cytokines resulting from brain insults induce astrocytes to adopt a reactive phenotype during which these cells also produce proinflammatory cytokines and neurotoxic free radicals such as nitric oxide (1). Reactive astrocytes produce a compendium of inflammatory and anti-inflammatory cytokines; the balance between these opposing groups of factors determines the fate of the affected neurons. Proinflammatory factors such as tumor necrosis factor ␣ (TNF␣) 1 or interleukin 1 (IL-1) trigger the expression of more proinflammatory genes in astrocytes and eventually induce apoptosis in neurons, whereas other factors including interleukin 4 (IL-4) and insulin-like growth factor I (IGF-I) reduce inflammation and promote survival of neurons (2). Cross-talk between the signaling pathways of these two groups of factors has been proposed as a mechanism for regulation of apoptosis and survival. Although it has been known for many years that TNF␣ induces insulin resistance...